What Can I Do If I Am the Victim of a Securities Fraud?

by Scott L. Silver

Last Updated May 27, 2025 In Securities Fraud

Securities fraud is far more prevalent than many people believe. Even sophisticated investors sometimes find that they have lost money in a fraud due to unscrupulous or careless third-parties.

If you were the victim of securities fraud, you don’t have to just accept your losses without recourse. There are steps you can take to hold the fraudsters accountable and recoup at least some of your losses. Our securities fraud attorneys at Silver Law Group can guide you through your legal options.

Cut Your Losses

The first step when you realize you have been defrauded is to cut your losses. If you are still dealing with a person or entity who misled or tricked you, terminate the relationship.

If you are still holding an investment that lost money, consider what to do. You do not limit your options by holding the investment or selling it. If there is a legal action, any investor who held the securities while the fraud was ongoing is likely eligible to participate in a class action.

Learn About Securities Fraud Class Actions

Bringing a lawsuit when you’re the victim of securities fraud can be intimidating. If your losses were relatively modest, you might be afraid that the cost of litigation would eat up any compensation the lawsuit generates. With Silver Law Group, this is not an issue, because we operate on a contingency fee basis.

Securities fraud class action lawsuits are the answer for many smaller investors. Anyone who held the securities during the period when the fraud was ongoing is a plaintiff in the lawsuit. If the case resolves in favor of the investors, you will receive a pro rata share of the settlement.

If you’re not sure whether there is an ongoing lawsuit concerning the fraud that victimized you, contact an attorney at Silver Law Group. We keep abreast of all the ongoing class action lawsuits and will be happy to advise you on your status.

Larger Investors Should Act Quickly

Being a relatively passive participant in a class action lawsuit is an effective strategy for many smaller investors. However, if your losses were substantial or represent a significant portion of your net worth, there are other options you should consider.

One possibility is to apply to be the lead plaintiff in the class action. In many securities class actions, you may apply to be a lead plaintiff within 60 days of the first lawsuit filing relevant to the matter. As lead plaintiff, you manage the litigation, can help set strategy, and have approval over any settlement.

You may have claims different from those asserted in the class action or your claims may involve additional defendants. In that case, a class action lawsuit is unlikely to provide adequate relief against all responsible parties. Experienced attorneys can determine whether an individual lawsuit is the best strategy in your case.

Contact Us If You Are the Victim Of Securities Fraud

If you discover that you’ve been defrauded, act as quickly as possible. The longer you wait, the fewer options are available to you. At Silver Law Group, we have made our careers obtaining favorable results for investors who are victims of securities fraud and Ponzi schemes. Call us and learn what you nee to do to begin the process of acquiring compensation.